WASHINGTON (AP) -- Northrop Grumman Corp., operator of a huge shipyard in Pascagoula, Miss., said Wednesday earnings for the third quarter were hurt by higher pension costs, but results handily beat analyst estimates, and the maker of military aircraft, ships and defense electronics lifted its profit outlook for the year.

Northrop now predicts 2009 earnings per share between $5 and $5.15 -- surpassing Wall Street's current forecast of $4.85 per share, as measured by a Thomson Reuters analyst survey. Northrop previously forecast income of $4.65 to $4.90 per share for the year.

In the third quarter, Northrop's income fell about 4 percent to $490 million, or $1.53 per share. It was well above analysts' average forecast of $1.18 per share.

Quarterly earnings were reduced by 19 cents per share as a result of pension expense. However, Northrop also recorded a tax break of 23 cents per share.

Revenue grew 4 percent to $8.73 billion, led by the company's shipbuilding unit. Shipbuilding sales rose 14 percent as a result of increased work on several Navy programs including the Virginia-class submarines, an amphibious transport dock ship and a class of destroyers.

Aerospace sales increased 5 percent on higher revenue from unmanned aircraft, like the Global Hawk.

Revenue from Northrop's Electronic Systems and Information Systems units rose 2 percent and 4 percent, respectively.

The Los Angeles-based company contributed $586 million to its pension plan in the third quarter, which it didn't in the same quarter last year.

Northrop said it received a total of $10 billion in new business awards during the July-September period.

The company operates shipyards in Avondale, La., near New Orleans and in Pascagoula. Its Avondale yard recently turned over to the Navy an amphibious dock landing ship, the USS New York, which was built with sections of steel salvaged from the collapsed World Trade Center towers.